Part B News Quotes Paul Werner on Legal, Regulatory Hurdles of Subleasing Doctor’s Office
Buttaci, Leardi & Werner member Paul Werner was quoted throughout an article in Part B News titled “Subletting a doctor’s office? Make sure you’re covered, not coasting.” The article, published in the March 2, 2026 issue, discusses the legal and regulatory requirements for a physician subletting their office space.
Werner, who has handled many litigations that centered around the relationships between the sublessor and sublessee, says, “The subleasing arrangement is not an issue in and of itself, but because of past instances of inappropriate use of the relationship it is something that is carefully scrutinized.”
He says sublessees need to be absolutely clear with their sublessor and the landlord about what kind of services and procedures they’ll be doing in the office.
“Because medical office space is often subject to ground leases with larger groups, there can be prohibitions on the type of tenant [that can sublet],” Werner says. “For example, the sublessor may be providing services that fall squarely within their lease and the ground lease that ‘resides’ above it — but a prospective subtenant may want to provide services that are prohibited by the ground lease because they ‘compete’ with other services in the building.”
Werner says both sides also need to put in writing the use of equipment, especially if it’s leased equipment, because sometimes the lessor doesn’t allow third-party use.
Regarding insurance, Werner says the provider subleasing the space needs to carry the same professional liability insurance coverage as if they were the main tenant.
“You would also carry all the same business insurance coverage, as well as general liability coverage that would specify that you are the subtenant — and would likely name the landlord as an additional insured.”
If it seems duplicative, Werner says, so be it. “To the extent, for example, a patient of the subleasing party falls on the premises, they may not know or care that their doctor, etc., was simply a subtenant. So that subleasing party can expect to be named in the lawsuit, if there is one.”
The full article can be read at Part B News (subscription required).
- Posted on: Mar 9 2026